Snapshot
Illinois Tool Works Inc reported $4.06B of revenue in Q3 2025, up 2.3% year over year, with diluted EPS of $2.81 and an operating margin of 27.4%.
- Revenue
- $4.06B
- YoY growth
- +2.3%
- Diluted EPS
- $2.81
- Operating margin
- 27.4%
$4.06B
Revenue
+2.3%
YoY growth
$2.81
Diluted EPS
27.4%
Operating margin
01 Key takeaways
What management said
- •Good day, everyone, and thank you for joining us for today's ITW Third Quarter 2025 Earnings Webcast.
- •During today's call, we will discuss ITW's third quarter financial results and provide an update on our outlook for full year 2025.
- •For the third quarter, revenue increased 3%, excluding a 1% reduction related to our ongoing strategic product line simplification efforts.
- •Organic growth was 1%, a solid performance relative to end markets that we estimate declined low single digits and a 1 percentage point improvement from our second quarter growth rate.
- •Focusing on the bottom line, we achieved GAAP EPS of $2.81, grew operating income by 6% to a record $1.1 billion, and significantly improved our operating margin by 90 basis points to 27.4%.
- •Consistent with our long-term commitment to increasing annual cash returns to shareholders, on August 1, we announced our 62nd consecutive dividend increase, raising our dividend by 7%.
- •Furthermore, I'm encouraged by the significant progress on our next phase strategic growth priorities.
- •We remain laser-focused on making above-market organic growth powered by customer-backed innovation a defining ITW strength.
- •I will now turn the call over to Michael to discuss our third quarter performance and full year 2025 outlook in more detail.
- •Starting with the top line, total revenue increased by more than 2%, driven in part by 1% organic growth, an improvement of a percentage point from Q2.
- •Geographically, while North America organic revenue was flat and Europe was down 1%, Asia Pacific was a standout performer with a 7% increase, which included 10% growth in China.
- •Our enterprise initiatives were particularly effective this quarter, contributing 140 basis points to a record operating margin of 27.4%, which expanded by 90 basis points year over year.
SourcesCompany financials · earnings call
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